"However, we are committed to turning it around through the five-year strategy we announced last year, based on flying to global gateways, deeper alliances, smart investment in product and disciplined capital management.

"Formally separating the management of Qantas International and Qantas Domestic will ensure that we can independently run each business according to its specific priorities and market conditions."

The new structure will take effect from July 1 under the leadership of Mr Joyce.

Rival airline Virgin Australia says it will consider hiring engineers who lose their jobs in the restructure, which will see Qantas's facility at Melbourne's Tullamarine airport closed and a reduction of activity at its Avalon terminal in Victoria, with many positions shifted to Brisbane.

At 12:45pm (AEST) the Qantas share price was 0.8 per cent higher at $1.44.

Free trade is the oldest argument in federal politics and the issue that literally defined the federation era but opposition exists to the TPP, courtesy of the Investor-State Dispute Resolutions clause.